Month: December 2022

In its latest submission to the Australian Law Reform Commission’s (ALRC) Review of the Legislative Framework for Corporations and Financial Services Regulation, the Financial Planning Association of Australia (FPA) has suggested financial advice regulations are prioritised for transitioning to the ALRC’s proposed structure of the legal requirements based on thematic rulebooks.

The ALRC package of proposals aims to improve navigability of the law and remove duplication under a new legal hierarchy of:

  • Principles-based legislation
  • Scoping order – consolidated exclusions and exemptions; and
  • Thematic rulebooks.

FPA Chief Executive Officer, Sarah Abood, says: “The proposal is in line with FPA’s long-held position that the legal obligations placed on individual financial planning practitioners should be separated from the requirements that apply to AFS licensees and product providers.

“The ongoing dialogue between the ALRC, the FPA and the financial services sector more broadly, continues to be a constructive demonstration of

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Refinancing is a process in which you take out a new loan to pay off an old one. It’s an attractive option if interest rates are lower and the repayment term is shorter. Knowing the benefits and disadvantages of refinancing your car loan and mortgage is best so you can make wiser decisions. Below are some things to know about it. Get more info about a mortgage on this webpage.

Debt refinancing is the process of renewing a debt, but you can make the term longer or shorter. A good example is a 30-year mortgage that will be converted into a 15-year one when the financier allows this. This can be done for various reasons, such as getting a lower interest rate, changing the repayment terms, or consolidating multiple credit cards into one.

When refinancing, check a lot of financiers and see what their offers are. Use a calculator …

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1. If your income is higher in 2022, defer your bonus into 2023

If you’ve had a strong year and expect lower earnings in 2023, you may try to defer a holiday bonus until the new year, experts say.

“It’s always exciting to reap the rewards of hard work by getting a year-end bonus,” said Lisa Greene-Lewis, a CPA and tax expert with TurboTax. “But sometimes that may bump you up into another tax brackets.”

However, by receiving the money in January, you may reduce 2022 income without waiting too long for the funds, assuming your company allows it, she said.

2. Prepay future medical expenses for a deduction

It’s not easy to claim medical expense deductions. For 2022, there’s a tax break for unreimbursed medical expenses that exceed 7.5% of your adjusted gross income. But can only claim it if you itemize deductions.

Typically,

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The Financial Planning Association of Australia (FPA) has called on the Federal Government to broaden its proposed Compensation Scheme of Last Resort (CSLR) as well as extend the freeze on the ASIC levy for another year, in the upcoming Federal Budget.

In its pre-budget submission, the FPA has also called for all financial advice to have tax-deductible status; and for the Australian Taxation Office and Centrelink to improve their online access arrangements to ensure financial planners are able to act on behalf of their clients.

Sarah Abood, CEO of the FPA, says the CSLR and ASIC levy are two issues of particular importance to members in the current environment, and the FPA continues to prioritise them in its discussions with both government and industry.

In its Pre-Budget submission, the FPA says the current CSLR Bill (tabled in September) is too narrow in scope, provides inadequate coverage

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